<p>Mangaluru: A dispute related to the pending payment to a contractor during construction of the new building at the Lady Goschen <a href="https://www.deccanherald.com/search?q=Hospital">Hospital </a>was settled through compromise. </p><p>Through the settlement, the compensation amount to be paid by Nirmithi Kendra to the contractor, which had risen to around Rs 4 crore, including the interest, was reduced to Rs 1.83 crore through mutual agreement. The dispute arose in 2012–13. </p><p>Both the parties had sought to resolve the issue through arbitration. Accordingly, the case was examined in the district court under the Arbitration and Conciliation Act, 1996, and was later referred to Lok Adalat for settlement.</p>.3,000 cases referred to National Lok Adalat in Dakshina Kannada.<p>Fourth Additional District Judge Sridhar Gopalakrishna Bhat, who resolved the dispute in the Lok Adalat, said both the parties agreed to settle the matter through their lawyers.</p><p>The deputy commissioner of Dakshina Kannada also participated in the conciliation process, and the compensation was settled at Rs 1,83,23,040. </p><p>“The amount payable to the contractor had reached nearly Rs 4 crore, but through compromise it was reduced by half, which benefited the government,” he said.</p><p>Principal District Judge Basavaraj said the case was resolved with the consent of both the parties, saving a significant portion of public money. “This is a special case.”</p><p>In 2012–13, the Mangalore Refinery and Petrochemicals Limited had sanctioned Rs 21-crore CSR funds for the construction of a new building at the Lady Goschen Hospital.</p><p>Since MRPL did not provide advance payment, the works could not be assigned to the Public Works Department or other government agencies. Hence, a district-level committee decided to execute the work through the Nirmithi Kendra.</p><p>A tender was called for Rs 18 crore, and the contract was awarded to a contractor for Rs 9 crore. </p><p>However, the contractor failed to complete even half of the work even after three years, though it was supposed to be completed within two years. </p><p>Due to the delay, the then DC transferred the responsibility to another contractor. The second contractor completed the work and was paid accordingly. </p><p>Because of the delay by the first contractor, the payment was withheld with penalty. The contractor then approached the court, which ordered the payment of the pending amount.</p><p>The pending amount of about Rs 1.5 crore, along with 12% interest, had increased to nearly Rs 4 crore, which the Nirmithi Kendra had to pay. The case has now been settled by agreeing to pay Rs 1.83 crore to the contractor. </p>
<p>Mangaluru: A dispute related to the pending payment to a contractor during construction of the new building at the Lady Goschen <a href="https://www.deccanherald.com/search?q=Hospital">Hospital </a>was settled through compromise. </p><p>Through the settlement, the compensation amount to be paid by Nirmithi Kendra to the contractor, which had risen to around Rs 4 crore, including the interest, was reduced to Rs 1.83 crore through mutual agreement. The dispute arose in 2012–13. </p><p>Both the parties had sought to resolve the issue through arbitration. Accordingly, the case was examined in the district court under the Arbitration and Conciliation Act, 1996, and was later referred to Lok Adalat for settlement.</p>.3,000 cases referred to National Lok Adalat in Dakshina Kannada.<p>Fourth Additional District Judge Sridhar Gopalakrishna Bhat, who resolved the dispute in the Lok Adalat, said both the parties agreed to settle the matter through their lawyers.</p><p>The deputy commissioner of Dakshina Kannada also participated in the conciliation process, and the compensation was settled at Rs 1,83,23,040. </p><p>“The amount payable to the contractor had reached nearly Rs 4 crore, but through compromise it was reduced by half, which benefited the government,” he said.</p><p>Principal District Judge Basavaraj said the case was resolved with the consent of both the parties, saving a significant portion of public money. “This is a special case.”</p><p>In 2012–13, the Mangalore Refinery and Petrochemicals Limited had sanctioned Rs 21-crore CSR funds for the construction of a new building at the Lady Goschen Hospital.</p><p>Since MRPL did not provide advance payment, the works could not be assigned to the Public Works Department or other government agencies. Hence, a district-level committee decided to execute the work through the Nirmithi Kendra.</p><p>A tender was called for Rs 18 crore, and the contract was awarded to a contractor for Rs 9 crore. </p><p>However, the contractor failed to complete even half of the work even after three years, though it was supposed to be completed within two years. </p><p>Due to the delay, the then DC transferred the responsibility to another contractor. The second contractor completed the work and was paid accordingly. </p><p>Because of the delay by the first contractor, the payment was withheld with penalty. The contractor then approached the court, which ordered the payment of the pending amount.</p><p>The pending amount of about Rs 1.5 crore, along with 12% interest, had increased to nearly Rs 4 crore, which the Nirmithi Kendra had to pay. The case has now been settled by agreeing to pay Rs 1.83 crore to the contractor. </p>
